Mednax amends credit agreement for $800 million revolver due 2017

By Marisa Wong

Madison, Wis., Nov. 26 - Mednax, Inc. further amended and restated its Oct. 21, 2011 credit agreement on Nov. 19 to provide for an $800 million unsecured revolving credit facility, according to an 8-K filed Monday with the Securities and Exchange Commission.

The restated credit agreement includes a $75 million sub-facility for the issuance of letters of credit and a $37.5 million sub-facility for swingline loans.

The company may increase the credit facility to up to $1 billion.

The credit facility matures on Nov. 17, 2017.

Interest is equal to Libor plus 112.5 basis points to 175 bps. The applicable margin is based on the company's consolidated leverage ratio and is initially 112.5 bps.

The commitment fee ranges from 15 bps to 32.5 bps, also depending on the consolidated leverage ratio, and is currently 15 bps.

The credit agreement requires the company to maintain a minimum fixed-charge coverage ratio and not to exceed a specified consolidated leverage ratio.

Wells Fargo Securities, LLC, J.P. Morgan Securities LLC and U.S. Bank NA are the joint lead arrangers and joint bookrunners, with Wells Fargo Bank, NA as administrative agent, JPMorgan Chase Bank, NA and U.S. Bank as co-syndication agents and Fifth Third Bank as documentation agent.

Mednax is a Sunrise, Fla.-based medical group that provides neonatal, maternal-fetal and pediatric physician sub-specialty services as well as anesthesia services.

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